Tax Talk - The 20/20 tax resolution blog

The current economic downturn was tough on many businesses in 2009.  The IRS’s 2009 collection statistics, which were released in January, bear this out.  In 2009, the IRS collected $48.9 billion, which represents a 13 percent decrease in collections from 2008 when the IRS collected $56.4 billion.  Although the amount collected in 2009 decreased, the level of enforced collection actually increased.  The number of liens issued by the IRS increased approximately 25 percent from 768,168 in 2008 to 965,618 in 2009.  Likewise, the number of levies issued by the IRS increased approximately 32 percent from 2,631,038 in 2008 to 4,478,181 in 2009.

As the effects of the economic downturn were felt by everyone, it appears the number of businesses and individuals that fell out of compliance with the IRS increased.  However, the ability to repay those liabilities decreased, despite the increase in enforced collection.  It is likely that the number of taxpayers owing money to the IRS and the number of liens filed in response will remain high and may even continue to increase through 2010.